Australia’s Data Breach Surge: Why Insurance Should Be Part of Your Cyber Playbook

Not long ago, data breaches were treated as an issue for IT teams alone. Today, the numbers tell a different story. In the second half of 2024, there were 595 breach notifications, compared with 518 in the first half. Nearly 70 per cent of all breaches were the result of malicious or criminal attacks, with phishing, ransomware and stolen credentials leading the way. 

The consequences are clear. A breach doesn’t just affect a server, it can stop customer service, delay payroll, disrupt supply chains, and erode trust in a matter of hours. What was once considered a technical hiccup is now firmly a boardroom-level risk. 

Australia’s breach statistics reveal some striking patterns: 

• Volume: 1,113 breaches in 2024, up from 893 the year before. 
• Cause: Malicious attacks accounted for almost 7 in 10 incidents, while human error made up a smaller but still significant share. 
• Sectors: Health providers (around 20 per cent) and government agencies (17 per cent) were the hardest hit, but no industry was immune. 
• Methods: Credential theft, phishing, and ransomware remain dominant, with credential-stuffing attacks on multiple superannuation funds in 2025 affecting thousands of accounts and resulting in losses estimated at AUD 500,000. 

Individual cases highlight the scale of the issue: 

• Qantas confirmed a breach in July 2025 impacting 5.7 million customers, one of the largest in recent memory. 
• Western Sydney University saw personal information from 10,000 staff and students exposed on the dark web. 
• Luxury retailer Louis Vuitton revealed a breach affecting Australian customer details, including names and contact information. 

Together, these cases demonstrate that breaches can strike any organisation, regardless of size, sector, or reputation. 

Statistics only tell part of the story. The true impact of a breach is measured not just in numbers, but in the disruption it causes: 

• Operational downtime: Systems locked by ransomware or disabled by attacks can halt business processes. 
• Financial fallout: Costs include investigation, remediation, legal fees, and potential regulatory fines. 
• Reputation and trust: Customers and partners may hesitate to engage with a business that has been breached. 
• Employee strain: Staff often bear the burden of working around outages, handling complaints, and managing fallout. 

Consider the ripple effect of an airline data breach. Beyond the direct exposure of customer details, passengers may lose confidence in booking, loyalty programs could be disrupted, and regulators may scrutinise data handling processes. The consequences extend far beyond IT. 

As breaches grow in scale, insurance is shifting from a “nice-to-have” to a strategic consideration. Importantly, this isn’t about replacing cyber security measures, it’s about recognising that no defence is perfect, and planning for recovery is as vital as prevention. 

The insurance market itself is evolving. Insurers are: 

• Asking tougher questions about cyber resilience during underwriting. 
• Requiring evidence of practices such as multi-factor authentication and incident response planning. 
• Refining policy wording to reflect the realities of ransomware, supply chain breaches, and regulatory changes. 

While the specifics of cover vary, what matters is the shift in mindset: insurance is being treated less as a financial afterthought and more as a way to connect technical exposures with business consequences. 

The cyber landscape shows no signs of slowing. Several forces suggest that breach numbers may continue to climb: 

• Privacy reforms: Changes to Australia’s Privacy Act are expected to increase penalties and obligations for organisations handling personal data. 
• AI-enabled attacks: The rise of generative AI tools is making phishing and social engineering more convincing and harder to detect. 
• Supply chain vulnerabilities: As businesses rely more on cloud and third-party platforms, a single vendor compromise can cascade across multiple industries. 
• Public awareness: Consumers are more conscious of their data privacy rights than ever before, putting added pressure on organisations to respond transparently and quickly. 

In this environment, resilience will depend on more than strong passwords or firewalls. It will require organisations to think holistically - combining technical defences, governance frameworks, and strategic tools like insurance into a unified approach. 

Australia’s record-high breach numbers in 2024 and the wave of incidents in 2025 are more than statistics. They signal a fundamental shift: cyber risk has become business risk. 

For leaders, the challenge is not whether a breach will occur, but how prepared the organisation is to respond when it does. That preparation isn’t about a single solution, it’s about building a playbook that blends defence, recovery, and resilience. 

The question for every organisation heading into 2026 is simple: if tomorrow’s headline had your name on it, how ready would you be? 

_{DISCLAIMER: This information is provided to assist you in understanding the risks, implications, and common considerations for your industry.  It does not constitute advice and is not complete. Please contact Knightcorp Insurance Brokers for further information.} 

_{DISCLAIMER: Third-Party Links: This article may contain links to external websites or content operated by third parties. These links are provided for your convenience and information only. Knightcorp Insurance Brokers does not endorse, approve, or accept responsibility for the content, accuracy, or security of any externally linked site.} 

_{Please note that any third-party websites are not covered by Knightcorp Insurance Brokers’ policies or procedures. We make no representations about the suitability of any information, product, or service contained on those sites for your needs. Use of third-party links is at your own risk, and we recommend reviewing their terms, conditions, and privacy policies.} 

_{For advice specific to your insurance needs, please contact your Knightcorp Insurance Brokers directly.}